Charts: Get Ready for the Next Euro Selloff
The euro's recent recovery versus the dollar will only be short-lived and investors should expect the single European currency to take another leg lower, Roelof van den Akker, chartist at ING Wholesale Banking, told CNBC Tuesday.
"This is just a short-term recovery to the downtrend and we should be prepared for another selloff," van den Akker said.
The euro is still within a longer-term downtrend and if it fails to form a base around $1.2170, then it could test the lower support area between $1.18 and $1.14, he said.
It has made solid gains in recent sessions versus the dollar, but is "obviously running into overhead resistance," van den Akker said.
A decline in the euro could signal a drop in European stocks as well, according to van den Akker.
On Monday, analysts at ING Bank pointed out that recent talk about creating a "two-tier" euro zone is likely to push the euro lower.
- Watch the video above to see the full interview with Roelof van den Akker.